This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 2 Principles Of Management – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 2 Principles Of Management Quiz 21 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If a company allows employees to make small decisions about their work process without consulting the manager, it follows the principle of A) Initiative. B) Authority. C) Discipline. D) Centralization. Show Answer Correct Answer: A) Initiative. 2. .... describe the ability to analyze and diagnose a situation and distinguish between cause and effect. A) Conceptual skills. B) Human skills. C) IT skills. D) Technical skills. Show Answer Correct Answer: A) Conceptual skills. 3. Which of the following can be delegated? A) Responsibility. B) Authority. C) Accountability. D) All of the above. Show Answer Correct Answer: B) Authority. 4. An organization has a better chance to grow faster if its employees are stable A) Esprit de corps. B) Equity. C) Security of tenure. D) Remuneration. Show Answer Correct Answer: C) Security of tenure. 5. A formal system of task and reporting relationships coordinates and motivates organizational members to work together to achieve organizational goals. A) Chart. B) Chain of command. C) Leadership. D) Organizational structure. Show Answer Correct Answer: D) Organizational structure. 6. Economics systems models A) Capitalism. B) Communism. C) Socialism. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. What does the principle of "Esprit de Corps" emphasize in management? A) Individual achievement. B) Team spirit and unity. C) Strict hierarchy. D) Financial incentives. Show Answer Correct Answer: B) Team spirit and unity. 8. It is mainly concerned in production A) Industry. B) Service. C) Manufacturing. D) None of the above. Show Answer Correct Answer: A) Industry. 9. It's a business strategy in which a company focuses on preserving its current market position. A) Stability Strategy. B) Cost Leadership Strategy. C) Growth Strategy. D) Differentiation Strategy. Show Answer Correct Answer: A) Stability Strategy. 10. 5) According to principle of 'Cooperation, Not individualism', competition should be replaced with ..... A) Management. B) Harmony. C) Coordination. D) Cooperation. Show Answer Correct Answer: D) Cooperation. 11. Which of the following is NOT one of the three sectors of sports? A) Professional or commercial. B) Financial. C) Non-profit or voluntary. D) State or public. Show Answer Correct Answer: B) Financial. 12. If a manager is NOT fair to his subordinates, which Management principle is violated here? A) Equity. B) Scalar Chain. C) Unity of Command. D) Unity of Direction. Show Answer Correct Answer: A) Equity. 13. Forecasts are usually classified by time horizon into three categories A) Short-range, medium-range, and long-range. B) Strategic, tactical, and operational. C) Departmental, organizational, and industrial. D) Finance/accounting, marketing, and operations. Show Answer Correct Answer: A) Short-range, medium-range, and long-range. 14. The ability to minimize the use of resources in achieving organizational objectives; "DOING THINGS RIGHT" . A) EFFECTIVENESS. B) EFFICIENCY. C) All the above. D) None of the above. Show Answer Correct Answer: B) EFFICIENCY. 15. Considering the fact that it is difficult to find one single person with all the needed qualities, Taylor suggested appointment of a specialist through this technique of scientific management. Identify the technique. A) Standardisation and simplification of work. B) Method study. C) Functional foremanship. D) Motion study. Show Answer Correct Answer: C) Functional foremanship. 16. On what basis the scientific principles of management were derived. A) Observation. B) Experimentation. C) Practice. D) All. Show Answer Correct Answer: D) All. 17. Parul is a manager in a fast-food restaurant, and she supervises employees who serve the food. As such, Parul is a ..... manager. A) Top. B) First-line. C) Human resource. D) Product. E) Middle. Show Answer Correct Answer: B) First-line. 18. In general, ..... uses a quantitative approach to find ways to increase productivity, improve quality, and manage or reduce costly inventories. A) Informational management. B) Management science. C) Communications management. D) Operations management. E) Administrative management. Show Answer Correct Answer: D) Operations management. 19. Work Study means A) To improve working conditions. B) Dividing work into sub processes. C) Doing work efficiently. D) All of the above. Show Answer Correct Answer: B) Dividing work into sub processes. 20. Workers cooperate to achieve common goals. Which principle is involved? A) Unity of Command. B) Esprit de Corps. C) Discipline. D) Authority. Show Answer Correct Answer: B) Esprit de Corps. 21. What does the term 'Kaizen' mean? A) Change for the worse. B) Improvement. C) To maintain the status quo. D) To eliminate all waste. Show Answer Correct Answer: B) Improvement. 22. Which of the following is NOT a significance of management principles? A) Universal Applicability. B) Inflexibility. C) Meeting Changing Environmental Requirement. D) Scientific Decisions. Show Answer Correct Answer: B) Inflexibility. 23. During an emergency, two employees communicate directly by bypassing formal hierarchy. This is known as: A) Unity of Direction. B) Discipline. C) Scalar Chain. D) Gang Plank. Show Answer Correct Answer: D) Gang Plank. 24. General Administration theory was proposed by A) Frederick Winslow Taylor. B) Elton Mayo. C) Chester Bernard. D) Henry Fayol. Show Answer Correct Answer: D) Henry Fayol. 25. Identify the correct order (1) Measuring Performance (2) Taking Corrective Action (3) Analysing deviation (4) Comparing performance with standards A) 2-3-4-1. B) 1-4-3-2. C) 4-3-2-1. D) 1-2-3-4. Show Answer Correct Answer: B) 1-4-3-2. 26. The most senior manager at a company is the A) CMO. B) Director. C) CFO. D) CEO. E) COO. Show Answer Correct Answer: D) CEO. 27. Early theories concentrate on what motivates individuals in their work they include A) Maslows hierarchy of needs. B) Herzbergs hygiene and motivator factor. C) All of the above. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 28. Management is a process of determining goals and objectives, as well as ways to use physical resources and human capital in an organization. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 29. Legal responsibilities call for businesses to obey ..... , state, federal, and relevant international laws. A) Personal. B) Municipal. C) Local. D) Corporate. Show Answer Correct Answer: C) Local. 30. Workers follow rules voluntarily due to mutual respect. Which principle is highlighted? A) Discipline. B) Authority. C) Equity. D) Order. Show Answer Correct Answer: A) Discipline. 31. The principle of initiative encourages managers to: A) Micromanage every aspect of employees' work. B) Discourage employees from sharing new ideas. C) Limit employees' creativity and problem-solving. D) Encourage employees to take the lead in proposing and implementing new ideas, projects, or solutions. Show Answer Correct Answer: D) Encourage employees to take the lead in proposing and implementing new ideas, projects, or solutions. 32. On-going purpose of organization that identifies the fundamental purpose of an organization, and often describes what an organization does, whom it serves, and how it differs from similar organizations. A) Mission statement. B) Vision statement. C) Objective. D) Goal. Show Answer Correct Answer: A) Mission statement. 33. Integrity-based ethics programs are company mechanisms designed to instill in people a personal responsibility for ethical behavior. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 34. In working with his employees, Carlos involves them in decision making and encourages them to participate in deciding their work methods and goals. Carlos's leadership style can best be described as ..... A) Democratic. B) Laissez-faire. C) Autocratic. D) Participative. Show Answer Correct Answer: A) Democratic. 35. The statement of "Management is the life giving dynamic element in every business" -said by whom? A) Fayol. B) Newman cardinal. C) Peter Druck. D) Willam spriegal. Show Answer Correct Answer: C) Peter Druck. 36. What principle ensures that activities toward the same goal are coordinated under one plan? A) Centralization. B) Discipline. C) Initiative. D) Unity of Direction. Show Answer Correct Answer: D) Unity of Direction. 37. What are the types of informal groups? A) Functional Teams and Self-Directed Teams. B) Common and Task Group. C) Interest and Friendship Group. D) Virtual Teams and Task Forces. Show Answer Correct Answer: C) Interest and Friendship Group. 38. A manager motivating employees and giving instructions is performing: A) Staffing. B) Directing. C) Controlling. D) Planning. Show Answer Correct Answer: B) Directing. 39. A tall structure has ..... A) Wide span of management. B) Narrow span of management. C) No span of management. D) Less levels of management. Show Answer Correct Answer: B) Narrow span of management. 40. Which of the following best describes the 'scope of management'? A) Only limited to financial decisions. B) Encompasses planning, organizing, leading, and controlling within an organization. C) Limited to top-level executives. D) Excludes human resource management. Show Answer Correct Answer: B) Encompasses planning, organizing, leading, and controlling within an organization. 41. Which type of standard establishes the expected amount of work to be completed? A) Time. B) Quantity. C) Cost. D) Quality. Show Answer Correct Answer: B) Quantity. 42. 1) All principles of management are of ..... importance. A) Different. B) Unequal. C) Equal. D) None of the above. Show Answer Correct Answer: C) Equal. 43. Which study is not done under scientific management: A) Profit. B) Fatigue. C) Motion. D) Time. Show Answer Correct Answer: A) Profit. 44. The technique of Scientific Management given by Taylor, which aims to establish the interchangeability of manufactured parts and products is: A) Motion study. B) Differential Piece wage system. C) Standardization. D) Method Study. Show Answer Correct Answer: C) Standardization. 45. Which of the following is not a benefit of planning? A) Planning reduces overlapping and wasteful activities. B) Planning is a mental exercise. C) Planning provides directions. D) Planning reduces the risk of uncertainty. Show Answer Correct Answer: B) Planning is a mental exercise. 46. Control should be: A) Rigid. B) Flexible. C) Strict. D) None. Show Answer Correct Answer: B) Flexible. 47. According to Taylor there can be many hindrances in good performance which may lead to fatigue, Identify the most suitable cause of fatigue among the following options A) Long Hours of work. B) Doing Unsuitable Work. C) Non Cordial Relation with boss. D) All the above. Show Answer Correct Answer: D) All the above. 48. What was the employee satisfaction percentage for Saxon Fields in 2018-19? A) 52%. B) 40%. C) 70%. D) 67%. Show Answer Correct Answer: C) 70%. 49. Many times, a person is removed from the company when he/she prioritizes sideline jobs using the company's resources A) Order. B) Initiative. C) Discipline. D) Subordination of individual interest to general interest. Show Answer Correct Answer: D) Subordination of individual interest to general interest. 50. Decision making authority is dispersed throughout the organization A) Delegation. B) Centralization. C) Decentralization. D) Organization. Show Answer Correct Answer: C) Decentralization. 51. Within your workplace, a worker describes how his coworkers leave business documents on the reception desk and personal belongings within the conference room when their manager is absent. How would this affect the functioning of a company? A) The company would not be able to complete its tasks efficiently. B) The company would not be able to complete its tasks effectively. C) Both a and b are correct. D) Both a and b are incorrect. Show Answer Correct Answer: C) Both a and b are correct. 52. Simple organizational structures; clear and does not have many procedures, open discussion, relationship based on family and not formal. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 53. The internal environment consists of conditions and forces within the Organization. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 54. Which of the following is the power that rests on the leader's ability to punish or control? A) Reward power. B) Expert power. C) Referent power. D) Coercive power. Show Answer Correct Answer: D) Coercive power. 55. Corporate strategy can be define as ..... A) Tactics to beat the competition. B) Business you should be in. C) Company business activities. D) Operational method. Show Answer Correct Answer: B) Business you should be in. 56. Which of the following is not a type of position power? A) Expert power. B) Coercive power. C) Reward power. D) Legitimate power. Show Answer Correct Answer: A) Expert power. 57. Changing the skill set of employees to ensure that they are aligned with business needs and are up to date; this can ensure staff remain motivated and productive, but also helps to increase staff retention A) Upskilling. B) Reskilling. C) Training. D) None of the above. Show Answer Correct Answer: B) Reskilling. 58. Which of the following describe(s) a global marketplace? A) The entire world is a marketplace. B) National borders are irrelevant. C) The potential for organizations to grow expands dramatically. D) All of the given options. Show Answer Correct Answer: D) All of the given options. 59. Interpersonal roles includes figurehead, inclusion, liaison A) Trues. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) Trues. 60. In which year Taylor became an Engineer from a worker? A) 1884. B) 1878. C) 1901. D) 1903. Show Answer Correct Answer: A) 1884. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 2 Principles Of Management Quiz 1Class 12 Business Studies Chapter 2 Principles Of Management Quiz 2Class 12 Business Studies Chapter 2 Principles Of Management Quiz 3Class 12 Business Studies Chapter 2 Principles Of Management Quiz 4Class 12 Business Studies Chapter 2 Principles Of Management Quiz 5Class 12 Business Studies Chapter 2 Principles Of Management Quiz 6Class 12 Business Studies Chapter 2 Principles Of Management Quiz 7Class 12 Business Studies Chapter 2 Principles Of Management Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books